Investing in shared infrastructure
My favorite article this week is by William Alden of the Huffington Post. He brings out an element of the municipal bond market that I’ve long believed could be the future of muniland: the propensity of people to invest in projects and entities that they have a first-hand experience or a connection to.
War bonds, issued to pay for World War I and II, are a case in which investors moved their savings to particular investment products for emotional, social or patriotic reasons.
Alden highlights a new retail bond program I hadn’t heard of yet (emphasis mine):
Massachusetts’ new program, Build Mass Bonds, will offer $1,000 bonds to individual investors during a special order period this coming weekend. The state hasn’t offered a bond that small in more than two decades, according to a release.
The Massachusetts Treasury invoked a sentimental sense of allegiance to the state.